Boohoo reveals appointment of PKF Littlejohn as new auditor

Boohoo has announced its new auditor is to be PKF Littlejohn.

PWC held the role at the under pressure fast-fashion firm for seven years before announcing in October that it would be stepping down.

Boohoo has faced allegations this summer that some of its Leicester-based suppliers paid workers below the minimum wage, and that workers were enduring unsafe conditions.

In October, the Financial Times reported that PWC resigned as auditor over concerns about the reputational risks of continuing to work for the online group.

The company denied the auditor resigned for this reason, however. It began a competitive tender process for audit services, and said on Monday that its Board had approved the decision to appoint PKF Littlejohn with immediate effect.

Unlike PWC, the fashion firm's new auditor - thought to be the UK's eighth-largest accountant - is not one of the UK’s top ranking “Big Four” firms.

Analysts at Shore Capital noted that the appointment “is an interesting one after what the company term a competitive tender”. 

They said: "It would be interesting to note who else amongst the bigger audit firms choose to participate (or not) in the tender process.”

However, analysts at Jefferies noted that PwC “has confirmed that there are no matters in connection with the change that should be brought to the attention of shareholders”, and that other members of the Big Four accountancy firms, including KPMG, are already engaged by Boohoo to provide non-audit services.